On Monday, International Business Machine Corp. (IBM) will make a major acquisition as it pays $4.6 billion for the purchase of Apptio. This marks the seventh purchase so far under the Chief Executive Officer, Arvind Krishna.
Krishna has pushed relentlessly, to transform the company into an artificial intelligence and hybrid-cloud business.
YOU MAY ALSO LIKE: Aston Martins Partners With Lucid for Electric Vehicle Technology
Apptio was founded in 2007 and is based in Seattle. It helps companies track and control their spending on cloud services. It also offers additional functionalities such as forecasting, financial analysis, and IT budgeting.
Apptio went public in September 2016 at $16 per share, and in 2018, was acquired by Vista Equity Partners at $2 billion. At the time, the price was more than twice Apptio’s market cap.
In a statement on Monday, IBM stated that it will spend its available cash on the transaction, with plans to close it in the second half of the year as they await regulatory and other approvals.
Before the acquisition, Apptio’s owners remained Vista Equity Partners. In 2019, IBM bought RedHat, a software provider, for about $34 billion – its biggest acquisition ever. Two years afterwards, it closed down its data center business, Kyndryl Holdings, and the following year, its healthcare analytics and data assets.
“Our customers are evolving to a complex digital-first, hybrid world where technology investments are distributed and decentralized but all innovation must be aligned with clear business outcomes,” said Sunny Gupta, co-founder and CEO of Apptio.
“We are so excited to be joining IBM and combining our industry-leading offerings with IBM’s global presence and strong portfolio across AIOps, automation, and hybrid cloud offerings.
“Earlier this year, IBM cut around 3,600 jobs and in the year’s first quarter, reported less than one percent year-over-year revenue increase.
At present, Apptio has more than 1,500 customers as well as integrations and partnerships with notable cloud companies including Salesforce, Microsoft Azure, ServiceNow, Google Cloud Platform, Oracle, SAP, and Amazon Web Services. These should come as a big plus for IBM.
YOU MAY ALSO LIKE: Hacker Who Hijacked Biden’s And Musk’s Accounts Imprisoned
“Technology is changing business at a rate and pace we’ve never seen before. To capitalize on these changes, it is essential to optimize investments which drive better business value, and Apptio does just that,” said IBM CEO Arvind Krishna.
“Apptio’s offerings combined with IBM’s IT automation software and watsonx AI platform, gives clients the most comprehensive approach to optimize and manage all of their technology investments,” she added.
 will make a major acquisition as it pays $4.6 billion for the purchase of Apptio.){kind=link}